A new report released on May 11, 2015, by The Brattle
Group in conjunction with CTIA - The Wireless Association entitled “Mobile Broadband Spectrum: A Vital
Resource for the American Economy” found that spectrum licenses issued
to U.S. wireless carriers generate $400 billion annually in economic activity. Spectrum
licenses also have a very large positive multiplier effect on other parts of
the economy. The $400 billion in directly attributable economic activity does
not even include the value of mobile applications, which use licensed spectrum
for their business platforms.
Due to a robust and competitive wireless
market, the report says that the downward pressure on prices has saved wireless
consumers somewhere between $5 - 10 trillion over time – the aggregated difference
between what consumers are willing to pay and what they actually pay. This
income effect has led to positive spillovers in many other parts of the economy
because consumers have more money to spend on other goods and services. Additionally,
licensed spectrum creates positive spillovers for job creation. According to
the report, for every person employed in the wireless industry, an additional
6.5 people will be employed in other sectors.
There is no doubt that the wireless industry is growing
quickly in the U.S. The FCC will need to auction off more spectrum in order to
keep up with the demands of consumers and conduct the auctions in a way that
does not encumber them with extraneous conditions. (See this blog
for more on spectrum auctions.)
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